What Canadians don’t know about their mortgage insurance will surprise you
By Lin Ray on 29 May. 2023
Being a homeowner in Canada is a huge financial undertaking. What you might not know is that mortgage lenders are making it harder by offering mortgage insurance that often comes with unpleasant surprises.
Unknown to many Canadians, this type of coverage decreases as you pay down your mortgage balance, while your rates remain the same. Once the mortgage is paid off, your coverage is zero.
What’s more, if you decide to sell your home before your mortgage has been completely paid off, you lose the protection you have purchased.
Finally, the benefit of this plan is paid directly to your lender, protecting the bank; not your family.
We can all agree that a plan like this does NOT have your best interest in mind.
For those who prefer a better, more reliable alternative, Mortgage Life Insurance from trusted insurance providers gives you the protection you’ve deserved all along.
With these plans, your coverage is guaranteed and remains active even if you move or pay off your mortgage. Your rates remain fixed, and the benefit amount is not affected by down payments.
Most importantly, the death benefit is paid directly to your loved ones, who can use it to cover the mortgage as well as ANY other needs.